Advertising, Sales Promotion,.ppt

7/28/2019 Advertising, Sales Promotion,.ppt

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Advertising, Sales Promotion,and Public Relations

Binish Nida Afaque


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Advertising

Advertising: any paid form of non-personal presentation and promotion

of ideas, goods, or services by an identified sponsor

Worldwide ad spending approaches an estimated $498 billion


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Possible Advertising Objectives

Informative advertising:

Tell market about new product

Suggest new uses Inform market of price change

Explain how the product works

Describe available services

Correcting false impressions

Reducing consumers fears Building a company image

Persuasive advertising:

Building brand preference

Encourage brand switching

Changing consumer perception ofbrand attributes

Persuading consumers to purchasenow

Persuading consumers to receive asales call

Reminder advertising:

Reminding consumers of need

Reminding where to buy product

Keeping product top-of-mind inand out of season


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Setting the Advertising Budget

Four methods

Affordable method

Percentage-of-sales method Competitive-parity method

Objective-and-task method

Other factors:

Stage in product life cycle Market share

Difficult to measure results

may lead to over-spending


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Four Methods

Affordable method: Setting the promotion budget at the levelmanagement thinks the company can afford

Percentage-of-sales method: Setting the promotion budget at a

certain percentage of current or forecasted sales or as a percentage ofthe unit sales price

Competitive-parity method: Setting the promotion budget to matchcompetitors outlay

Objective-and-task method: Developing the promotion budget by

defining the objectives and determining the tasks that must beperformed to achieve those objectives and estimating the costs ofperforming those tasks. The sum of these costs is the proposedpromotion budget


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Developing Advertising Strategy( Excluded)

Two major elements:

Creating advertising messages

Selecting advertising media

Message strategy:

Identify consumer benefits to beused in appeals

Develop the creative concept(big idea)

Advertising appeals: Meaningful

Believable

Distinctive


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Developing Advertising Strategy (continued)

Message execution: Slice of life

Lifestyle

Fantasy

Mood or image

Musical

Personality symbol Technical expertise

Scientific evidence

Testimonial evidence


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Developing Advertising Strategy (continued)

Selecting advertisingmedia:

Decide on reach, frequency,and impact

Choose major media types

Select specific mediavehicles

Decide on media timing

Factors:

Media habits of targetconsumers

Nature of the product

Types of messages

Cost


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Profiles of Major Media Types

Medium Advantages Disadvantages

Newspapers Flexibility; timeliness; good local market Short life; poor reproduction quality;

coverage; broad acceptability; high small pass-along audience

believability

Television Good mass-market coverage; low cost High absolute costs; high clutter;

per exposure; combines sight, sound, and fleeting exposure; less audience selectivity

motion; appealing to the senses

Direct mail High audience selectivity; flexibility; no ad Relatively high cost per exposure; "junk"

competition within the same medium; mail image

allows personalization

Radio Good local acceptance; high geographic Audio only; fleeting exposure; low attention

and demographic selectivity; low cost (the half-heard medium); fragmented

audiences

Magazines High geographic and demographic Long ad purchase lead time; high cost;

selectivity; credibility and prestige; high- no guarantee of position

quality reproduction; long life and pass-along

Outdoor Flexibility; high repeat exposure; low cost; Little audience selectivity; creative limitations

low message competition; good positional

selectivity

Internet High selectivity; low cost; immediacy; Small, demographically-skewed audience;

interactive capabilities relatively low impact; audience controls


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Other Advertising Considerations(Excluded)

Evaluation:

Measuring the communicationeffects

Measuring the sales effects

Organizing for advertising:

Advertising agency

International advertisingdecisions:

Standardization Cultural, economic, and

regulatory differences betweenmarkets


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Sales Promotion

Sales promotion:short-term incentives to encourage purchase orsale of a product or service

Consumer packaged goods companies: 74% of marketing expenditureson sales promotion

Factors contributing to growth of sales promotion:

Greater focus on increasing sales in the short-term

Senior management more accepting of sales promotion tactics

Greater competition Less brand differentiation

Decline in advertising efficiency

Consumers are more deal-oriented


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Sales Promotion (continued)

Consumer tools:

Samples

Coupons Cash refunds (rebate)

Price packs (cents-off deal)

Premiums

Advertising specialties

Patronage rewards Point-of-purchase displays

and materials

Contests

Sweepstakes

Trade promotions:

Discounts

Allowance Push money

Specialty advertising items

Business promotions:

Conventions and tradeshows

Sales contests


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Public Relations

Public relations:

Building good relations withthe companys various

publics by obtaining favorable

publicity,

building up a good corporateimage, and

handling or heading offunfavorable rumors, stories,and events

Public relations functions:

Press relations

Product publicity

Public affairs

Lobbying

Investor relations Development

Public relations tools:

News, speeches

Special events

Mobile marketing

Published materials

Website

Public service activities

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